The Kerala government has allocated Rs 10,431.73 crore for the health sector in 2025-26. The government also announced Rs 2,915.49 crore for the medical and public health sector. This is an increase of Rs 97.96 crore from the previous year. Presenting the budget on Friday, February 7, Finance Minister KN Balagopal said that in the last two-and-a-half years, the state has provided free medical care worth Rs 6,788 crore to more than 25.17 lakh people. The Karunya Aarogya Suraksha Padhathi (KASP) alone has benefitted 24.06 lakh patients with Rs 6,271 crore in medical aid.
The Minister also announced Kerala’s plan to become a wellness and health tourism hub and allocated Rs 50 crore to this effect. “There is a need to create an awareness campaign globally with respect to Kerala’s wellness specialities as well as achievements in the state’s healthcare sector. An amount of Rs. 50 crore is earmarked for the activities to make Kerala a hub of health tourism, which shall include augmentation of basic facilities along with extensive campaigns abroad,” he said.
He also allocated Rs 5 crore to install open air elderly-friendly exercise equipment in all existing parks in Kerala to “re-invigorate their old age life.”
The budget also focuses on expanding infrastructure and advanced treatment facilities. Key allocations include Rs 80 crore for the operational costs of 108 ambulances, Rs 45 crore for setting up cath labs in major medical colleges, and Rs 13.98 crore for expanding dialysis units across all district hospitals—making Kerala the first state in India to achieve full dialysis coverage. The budget has also earmarked Rs 152.5 crore for cancer detection and treatment. Additionally, Rs 28 crore has been allocated for completing a 14-story facility at the Regional Cancer Centre (RCC) to enhance patient care.
Further allocations include Rs 12 crore for preventing communicable diseases, Rs 8 crore for infertility clinics, and Rs 5.4 crore for expanding pain and palliative care services. The state has also sanctioned 1,020 new BSc Nursing seats and established 15 new government nursing colleges.
The budget also provides Rs 465.20 crore as the state’s share for the National Health Mission (NHM) and Rs 25 crore for the PM Ayushman Bharat Health Infrastructure Mission (PM-ABHIM).